Terry v. Claypool

65 N.E.2d 883, 77 Ohio App. 87, 32 Ohio Op. 353, 1945 Ohio App. LEXIS 614
Ohio Court of Appeals·Decided July 4, 1945·No. 471·Published·Cited by 7 cases

Opinion

•Guernsey, J.

This is an appeal upon questions of law and fact from a judgment of the Common Pleas Court of Hancock county, Ohio, in an action wherein O. G. Terry, Fred R. Hover and R. N. Larrimer were plaintiffs and P. E. Claypool and Olive J. Claypool' were defendants, and the cause is submitted de novo to this court upon the original pleadings-filed in the Common Pleas Court, and the evidence adduced in this court.

In their petition the plaintiffs, in substance, allege that on or about the 19th day of August 1942, they were awarded judgment for $1,200 against P. E. Clay-pool, one of the defendants, in case No. 26998 in the Court of Common Pleas of Hancock county; that they caused an execution to be issued on the judgment on or about the 8th day of September 1942, and delivered the execution to the sheriff of Hancock county who duly returned and filed the same on the same date, as ' not satisfied by reason of prior liens on the real estate levied upon consisting of an undivided one-half interest of the defendant P. E. Claypool in lots Nos. *89 4460 and 4461 in the Park addition in the city of Find-lay, Hancock connty, Ohio; that the prior liens at that time, as shown by the mortgage records of Hancock connty, on book 128, page 555, consisted of a first mortgage of the whole of both such lots, in the amount of $1,325 to The Hancock Savings & Loan Company of Findlay, Ohio, the. mortgage having been signed by P. E. Claypool and Olive J. Claypool as husband and wife; that subsequent thereto the plaintiffs caused an alias execution to issue against the interest of the defendant P. E. Claypool in the real estate and obtained an order of sale thereon; that the defendants devised and agreed between themselves for the defendant P. E. Claypool to pay the balance of $995.18 due on the mortgage, for the sole purpose of aiding the defendant P.„E. Claypool in cheating plaintiffs out of the money due them; that the defendant P. E. Claypool has property in the value of or money in the amount of $1,000 in his possession or under his control which ho conceals and refuses to disclose and account for; and that the payment of such indebtedness by him of the defendant Olive J. Clay-pool, which was her obligation and a lien on her individual interest in the real estate, constituted a fraud upon the plaintiffs herein as his creditors against which they have no adequate remedy at law. .

The prayer of the petition is that, the court find the defendant P. E. Claypool to be subrogated to the extent of half the amount paid on the balance due on the mortgage on behalf of the defendant Olive J. Claypool; that the interest of the defendant P. E. Claypool in the premises described to be one-half of the $995.18 in addition to the undivided one-half interest in the premises; and that the plaintiffs have a first lien upon the amount to be taken first from the proceeds of the sale of the real estate for application upon their judg *90 ment heretofore rendered in case No. 26998 and for other and full relief that may be just and proper.

The defendants P. E. Claypool and Olive J. Claypool filed separate unverified answers to the petition, denying each and every, all and singular, the material allegations in the petition of plaintiffs,

Without objection to the unverified answers, the case was submitted to this court.

The following facts appear in evidence:

Plaintiffs recovered'a judgment against P. E. Clay-pool, as alleged in the petition. The judgment was on an account for legal services rendered by them to P. E. Claypool in a proceeding brought by P. E. Claypool to recover compensation under the Workmen’s Compensation Act. The amount of compensation realized in the proceeding was between $4,500 and $4,800 which amount was paid direct to him by the Industrial Commission. Out of the compensation the defendant P. E. Claypool, on the 3rd day of June 1942, paid to The Hancock Savings & Loan Company the balance, amounting to $995.18,- due on certain indebtedness then owing by him and his wife Olive J. Claypool to such company, the payment of which was secured by mortgage on lots Nos. 4460 and 4461 in the Park addition in the city of Findlay, Hancock county, Ohio, the title to which stood in the joint, names of P. E. Claypool and Olive J. Claypool.

The mortgage indebtedness originally amounted to the sum of $1,325, but there is no evidence as to whether the funds used to pay the excess of the mortgage indebtedness over and above the sum of $995.18 was provided by P. E. Claypool or Olive J. Claypool, or both of them.

Execution was issued on the judgment of the plaintiffs against P. E. Claypool, to the sheriff of Hancock county, .Ohio, was levied upon his undivided one-half *91 interest in the lots, and was duly returned, as in the petition alleged, and thereafter an alias execution was issued against the undivided one-half interest of the defendant P. E. Claypool in the lots, and an order of sale was obtained thereon.

In their briefs filed herein, the defendants contend that the petition does not state a. cause of action against the defendants.

While the petition is inartfully drawn, it does state a cause of action in the nature of a creditor’s suit to subject real estate and equitable assets of the judgment debtor £o the payment of plaintiffs’ judgment, so that contention is without merit.

In their briefs the plaintiffs contend that by reason of the fact that the answers of the defendants were unverified such answers are ineffective to controvert the allegations in their petition and plaintiffs are entitled to judgment in their favor upon their petition. However, as stated above, the case was submitted upon the pleadings and the evidence without objection to the forms of answers, which constitutes a waiver of such objection, and the case will be considered in the same manner as if the answers were properly verified. As the case stands, it is not material that the answers were not verified, as the evidence adduced supports the allegations of the petition.

In order to determine what, if -any, relief the plain- ' tiffs are entitled to in this action it is necessary to consider certain rules of law applicable to suits of this character.

The plaintiffs, who were attorneys for P: E. Claypool in the proceeding to recover compensation under the Workmen’s Compensation Act, are precluded by the provisions of Section 1465-88, General Code, from having any lien on the compensation received by P. E. Claypool in the proceeding. Brewer v. Emmett., 22 N. P. (N. S.), 425, 31 O. D., 384.

*92 The doctrine of subrogation rests generally upon tbe principle that one who, for tbe purpose of protecting bis own interest, pays tbe debt or liability of another, is entitled to and may enforce all tbe liens and securities of tbe party to whom be pays. 38 Ohio Jurisprudence, 249.

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Terry v. Claypool, 65 N.E.2d 883, 77 Ohio App. 87, 32 Ohio Op. 353, 1945 Ohio App. LEXIS 614 (Ohio Ct. App. 1945).

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